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Thailand: Baht stable but seen weakening, as markets await US Fed move on QE

  • Aug 17, 2021

The baht opened at 33.43 to the US dollar on Tuesday, unchanged from Monday’s closing rate.

The Thai currency was likely to move between 33.40 and 33.55 during the day, Krungthai Bank market strategist Poon Panichpibool said.

He said the baht was likely to fluctuate and weaken due to the Covid-19 situation and the rising momentum of the US dollar.

He expected the dollar to receive support from the US Federal Reserve move to reduce quantitative easing (QE) this year and the demand for safe-haven assets due to the Covid-19 situation worldwide.

However, the statement from the Fed’s chair this week might cause the dollar to fluctuate and weaken if the Fed chair does not announce a reduction in quantitive easing this year, and the US economy recovers strongly as Fed officials revealed earlier.

Poon said the resistance of the baht would be at 33.50 to the dollar, as exporters continued to sell the dollar. The baht could weaken past the resistance level if the pandemic situation in the country worsened, along with the strengthening of the dollar.

 

Published : August 17, 2021

By : The Nation